Drake v. State

2008 WY 48, 182 P.3d 497, 2008 Wyo. LEXIS 49, 2008 WL 1795267
CourtWyoming Supreme Court
DecidedApril 22, 2008
DocketS-07-0092
StatusPublished
Cited by3 cases

This text of 2008 WY 48 (Drake v. State) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Drake v. State, 2008 WY 48, 182 P.3d 497, 2008 Wyo. LEXIS 49, 2008 WL 1795267 (Wyo. 2008).

Opinion

*498 HILL, Justice.

[11] Convicted of larceny by bailee, Appellant, Mark Allen Drake (hereafter "Drake"), challenges the imposition of a restitution order. Complicating matters, the restitution was imposed after Drake filed a voluntary Chapter 7 bankruptey petition and was granted a debt discharge.

[12] We affirm.

ISSUE

[138] Drake states his only issue as follows:

1. Whether the trial court erred in ordering [Drake] to pay restitution, since all amounts owed to Mr. Gulley had been discharged through the bankruptcy proceeding, and the restitution was intended primarily to collect a debt.

FACTS

[T4] This case arises from a failed Douglas, Wyoming, car dealership. Drake and Dean Gulley (hereafter "Gulley") formed D & M Motors, LLC, in October of 2000, for the purpose of selling used cars. To obtain inventory and establish a sales lot, the business secured loans from First National Bank. The men opened their doors for business in December of 2000, but shortly thereafter, the business fell on hard times. Gulley was seriously injured in a car accident, and, as a result, Drake began to shoulder much of the burden of D & M. The business was ultimately unsuccessful. In December of 2008, First National Bank closed the doors of D & M and in discovering that the inventory was depleted, the bank also discovered that Drake was indeed selling vehicles which the bank had financed, but instead of paying the bank, Drake was keeping the sales proceeds.

[15] Following this discovery, three legal actions were initiated: a civil action, this criminal action, and a bankruptcy proceeding. The civil proceeding began in March of 2004 when Gulley filed a civil complaint against Drake, alleging causes of action for conversion, negligence, fraud, and conspiracy. 1 In August of 2004, Drake was charged with eight felonies: four counts of defrauding a creditor; one count of larceny by bailee; one count of larceny; and two counts of false swearing. The criminal proceedings were continued while Drake underwent treatment for cancer. Nevertheless, a trial was scheduled for February of 2006. Meanwhile, in July of 2005, Drake filed a voluntary Chapter 7 bankruptey petition in Colorado. Gulley was listed as a creditor for the amount of $382,650. No creditor objections were filed, and in November of 2005, Drake received a debt discharge. 2

[16] Instead of taking the criminal charges to trial, the matter was resolved by plea bargain. In February of 2006, the State filed an amended information charging Drake with five counts: three counts of defrauding a creditor, one count of larceny by bailee, and one count of false swearing. On February 21, 2006, Drake pleaded guilty to larceny by bailee, and the other charges were dismissed. The State requested that a restitution hearing be conducted at a later time. Sentencing proceeded, however, and the court imposed a sentence of two to four years, which was suspended in favor of four years of supervised probation. Later, the court conducted multiple restitution hearings, and, in the end, ordered Drake to pay Gulley restitution in the amount of $88,890.31.

[17] This appeal followed.

STANDARD OF REVIEW

[18] Typically, the standard of review of restitution ordered is confined to a search for procedural error or a clear abuse of discretion. Penner v. State, 2008 WY 148, ¶ 7, 78 P.3d 1045, 1047-48 (Wyo.2003). However, there is a distinction between the standard of review of factual challenges to the amount of restitution ordered and challenges to the authority of the court to make a restitution award. Challenges to the factual *499 basis of an award of restitution can be waived if the defendant enters into a plea agreement and then fails to object at sentencing. Penner, ¶ 7, 78 P.3d at 1047. If the defendant does not object to the amount of restitution ordered by the district court, the reviewing court must review for plain error. If the defendant challenges the authority of the district court to order restitution, then review is under a de novo statutory interpretation standard because a court has only that authority to act which is conferred by the subject statute. Id.

DISCUSSION

[19] Drake claims that through his Chapter 7 bankruptcy petition, the District Court of Colorado Bankruptey Court discharged his obligation to pay criminal restitution in this case. Therefore, he argues that the restitution award is precluded by the bankruptey discharge. In response, the State submits that the district court acted within its authority in ordering restitution.

[110] There are inherent differences between the creditors and debtors of bank-ruptey proceedings and the victims and defendants of criminal proceedings. These differences are reflected in the goals of the different proceedings. Cable v. State, 6 S.W.3d 543, 547-50 (Tex.Crim.App.1999).

[T11] We have addressed questions about restitution before. In Abeyta v. State, 2002 WY 44, ¶ 1, 42 P.3d 1009, 1010-11 (Wyo.2002), we were asked to interpret the restitution statutes to determine whether or not settlement of civil lability claims extinguished a restitution order imposed against a criminal defendant during sentencing. The district court ruled that a civil liability settlement entered into by Abeyta and two victims of his criminal conduct did not extinguish the restitution order earlier imposed against him during sentencing for his criminal convictions, and the petition was denied. Id. We affirmed the district court on appeal reasoning, in part, that, "Uniformly, courts hold that a civil settlement or release does not absoive the defendant of criminal restitution." Id. at ¶ 16, 42 P.3d at 1013 (citing State v. DeAngelis, 329 N.J.Super. 178, 747 A.2d 289, 294 (N.J.Super.A.D.2000)). We also held that private parties cannot simply agree to waive the application of a criminal statute. Id.

[¥12] Abeyto also gave us the platform to reiterate the four purposes of sentencing: (1) rehabilitation; (2) punishment (specific deterrence and retribution); (3) example to others (general deterrence); and (4) removal from society (protection of the public). "[Rlestitution imposed by trial courts under these statutes is a criminal penalty meant to have deterrent and rehabilitative effects." Id. at ¶ 15, 42 P.3d at 1013. Generally, a state criminal justice system that imposes restitution during sentencing as a condition of probation and as part of the judgment of conviction is considered a penal sanction rather than civil in nature. Id.

[113] In contrast to the aim of the criminal justice system, the goal of the bank-ruptey system is not to punish, but to allow the honest debtor to restart his financial life.

In Kelly [v. Robinson, 479 U.S. 36, 107 S.Ct. 353, 93 L.Ed.2d 216 (1986)] the Supreme Court described the goal of bank-ruptey proceedings.

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2008 WY 48, 182 P.3d 497, 2008 Wyo. LEXIS 49, 2008 WL 1795267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drake-v-state-wyo-2008.